Sal. Oppenheim European Financial Conference Zurich November 20, 2007 Renato Fassbind, Chief Financial Officer
Cautionary statement Cautionary statement regarding forward-looking and non-gaap information This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties, and we might not be able to achieve the predictions, forecasts, projections and other outcomes we describe or imply in forward-looking statements. A number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions we express in these forward-looking statements, including those we identify in "Risk Factors" in our Annual Report on Form 20-F for the fiscal year ended December 31, 2006 filed with the US Securities and Exchange Commission, and in other public filings and press releases. We do not intend to update these forward-looking statements except as may be required by applicable laws. This presentation contains non-gaap financial information. Information needed to reconcile such non-gaap financial information to the most directly comparable measures under GAAP can be found in Credit Suisse Group's third quarter report 2007. Slide 2
Credit Suisse: record nine-month performance but third quarter results affected by market environment CHF m, except where indicated 3Q07 Change in % vs. 3Q06 9M07 Change in % vs. 9M06 Net revenues 1) 6,020 (19) 28,392 13 Total operating expenses 1) 4,733 (16) 19,410 9 Income from continuing operations before taxes 1) 1,283 (30) 8,945 22 Net income 1,302 (31) 7,220 9 Diluted EPS from 1.18 (9) 6.43 31 continuing operations in CHF 3Q07 3Q06 9M07 9M06 Return on equity 12.4% 18.9% 22.5% 21.7% Cost/income ratio 1) 78.6% 75.9% 68.4% 71.1% 1) for Core Results, i.e. excluding results from minority interests without significant economic interest Slide 3
Record nine-month results in Investment Banking and Private Banking Pre-tax income CHF m 4'498 4'109 9M06 9M07 1) +43% +19% 2) (2)% 601 Investment Banking Private Banking Asset Management Pre-tax income margin in % 25.1 27.7 39.7 40.9 19.7 27.0 1) Excluding credits received from insurance settlements for litigation costs of CHF 474 m 2) Excluding business realignment costs of CHF 192 m Slide 4
Maintained efficiency trends in nine-month 2007 Cost/income ratio %, based on Core Results 76 72 68 79 72 9M06 9M07 71 73 72 68 61 60 2005 9M06 9M07 IB PB AM Core Results 1) 2) 3) 2) 3) 2) 3) 1) Excluding charge to increase the reserve for private litigation of CHF 960 m and charge of CHF 630 m for change in accounting for share-based compensation 2) 9M06 excluding credits received from insurance settlements for litigation costs of CHF 474 m 3) 9M06 excluding business realignment costs of CHF 192 m Slide 5
Investment Banking breakeven in 3Q, but record ninemonths Pre-tax income CHF m 1) 3,609 +43% 4,498 758 2,502 6 Comments Results significantly affected by the market dislocation Valuation reduction on leveraged loan commitments of CHF 1.1 bn 2) Valuation reduction on structured products of CHF 1.1 bn 2) Poor performance in equity proprietary trading, primarily in quantitative strategies 9M06 9M07 3Q06 2Q07 3Q07 Record nine-month revenues and pre-tax income Pre-tax income margin in % 25.1 27.7 18.1 33.2 0.3 1) Excluding CHF 474 m of credits received from insurance settlements for litigation and related costs 2) Net of fees and hedges Slide 6
Market conditions and outlook 1/3 Residential mortgages Global RMBS origination volumes (in USD bn) 114 170 181 188 231 117 2004 2005 2006 1Q07 2Q07 3Q07 ABX Index 110 100 90 80 70 60 50 40 30 20 Jul-06 Aug-06 quarterly average Sep-06 AAA (Series 06-2) BBB (Series 06-2) Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Thomson / SDC Sep-07 Oct-07 Outlook Mortgage credit problematic; no pick-up in origination and syndication in medium-term RMBS represented approx. 3% of Group revenues in 2006 Credit Suisse has capacity to take advantage of trading opportunities US housing sector remains largest single asset class that will continue to require financing Longer-term opportunities in prime mortgage sector at more attractive margins Slide 7
Market conditions and outlook 2/3 Commercial mortgages Global CMBS origination volumes (in USD bn) 400 300 200 100 32 60 BBB AA AAA 75 70 119 83 2004 2005 2006 1Q07 2Q07 3Q07 quarterly average CMBS spread trends Thomson / SDC Outlook Dramatic spread widening in third quarter 2007 and markets became frozen CMBS represented approx. 3% of Group revenues in 2006 Credit fundamentals still strong with delinquencies at historic lows Outlook in US market subject to resilience of economy Fundamentals stronger in Europe, but activities at near standstill 0 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Smaller market in Asia but fundamentals remain healthy Slide 8
Market conditions and outlook 3/3 Leveraged finance Leveraged finance new issuance (USD bn) 300 250 200 150 100 50 0 102 100 98 96 94 92 90 24- May 2004 2005 2006 1Q07 2Q07 3Q07 CDX Series 8 high yield bond index 07- Jun quarterly average 21- Jun 05- Jul 19- Jul 02- Aug 16- Aug 30- Aug 13- Sep Traded below 90 intraday 27- Sep High-yield new issuance 1) Leveraged loan volume 2) 1) Thomson 2) Standard & Poor's leveraged market data 11- Oct The CDX consists of 100 reference entities of high-yield bonds with an initial coupon of 2.75% 25- Oct 08- Nov Outlook In the middle of rebalancing process between supply and demand Appetite from investors; deals in market begin to sell High-yield market is an intrinsic component of modern corporate finance Leveraged finance origination represented approx. 5% of Group revenues in 2006 Shakeout provides excellent opportunity to enhance position as weaker competitors exit market Slide 9
Wealth Management delivered profitable growth while making investments to expand global franchise Pre-tax income CHF m 2,426 9M06 +19% 2,889 9M07 684 1,001 +32% (10)% 900 3Q06 2Q07 3Q07 Pre-tax income margin in % 39.7 40.7 37.1 42.0 38.4 Comments Good results in light of challenging markets with increased volatility Client activity relatively strong until mid- August despite summer slowdown Lower activity until mid-september and a subsequent recovery through quarter end Nine-month pre-tax income margin exceeded 40% mid-term target 90 new relationship managers in 3Q07 Slide 10
Wealth Management with steady gross margin and good asset inflows Gross margin Assets under management Basis points Transaction-based CHF bn Recurring revenues 118 112 115 109 113 112 101 43 41 39 39 41 34 32 30.06.07 FX and other effects Market and performance +2.2 860.5 (37.7) 1) 71 76 69 70 75 72 78 Net new assets +9.7 30.09.07 834.7 2006 9M07 3Q 4Q 1Q 2Q 3Q 2006 2007 Net new asset growth on AuM in 3Q07 (annualized) 4.5% rolling four quarters 6.2% 1) Includes a reduction of CHF 21.6 billion of corporate cash assets now reflected only in client assets Slide 11
Global reach in Wealth Management San Francisco Los Angeles Switzerland: 216 service locations; thereof 146 CRB only Germany: 13 service locations Italy: 38 service locations France: 3 service locations Spain: 3 service locations London Austria: 2 service locations Guernsey Luxembourg Frankfurt Paris Vienna Lisbon Zurich Milan St. Petersburg Monaco Chicago Boston Madrid Moscow Gibraltar Kiev Beijing Philadelphia Connecticut Dallas New York Istanbul Almaty Atlanta Baltimore Athens Beirut Miami Shanghai Nassau Cairo Doha Dubai Guangzhou Riyadh 1) Taipei Hong Kong Mexico Abu Dhabi Mumbai Panama Bangkok Caracas Bogotá Kuala Lumpur Singapore Lima Jakarta Santiago Rio de Janeiro São Paulo Montevideo Buenos Aires Cape Town Johannesburg Melbourne Sydney Service locations 1) Brokerage license only, joint venture with Saudi Swiss Securities Slide 12
Asset Management profitability adversely affected by environment Pre-tax income CHF m 611 1) 419 601 299 Comments Completed business realignment in 2006/early 2007 Performance negatively impacted by purchase of assets from our US money market funds, lower private equity gains 9M06 9M07 158 45 3Q06 2Q07 3Q07 Outside these areas, business shows momentum with stable margins and good net new assets growth Pre-tax income margin in % 19.7 27.0 22.8 35.1 7.6 1) Excluding business realignment costs of CHF 192 m Slide 13
Diversified assets under management Assets under management CHF bn Revenue split by asset class Total AuM Balanced Fixed income & money markets Alternative Investments 714 670 289 +7% 270 211 +1% 208 161 +17% 137 +7% Balanced 1) 29% Alternatives 42% Fixed Income 16% Equity 13% Equity 44 47 (6%) 30.09.07 31.12.06 1) Asset allocation: Multi Asset Class solutions and Advisory Note: all figures as of September 30, 2007; Total Assets under Management of CHf 714 bn include other with CHF 9.1 billion assets Slide 14
Strong capital and liquidity BIS Tier 1 ratio in % Risk-weighted assets in CHF bn 13.9 13.2 13.0 11.3 12.0 Comments Executed close to 50% of current CHF 8 bn program; expect completion during 2008 233 254 271 296 299 +1% Strong liquidity with good access to funding and large and stable customer deposit base +18% Limited exposure to CP conduits and SIVs 2005 2006 1Q07 2Q07 3Q07 Tier 1 capital in CHF bn 26.3 35.1 35.8 38.6 35.9 Slide 15
Progress against Group key performance indicators Diluted EPS growth in % (from continued operations as reported in period) Return on equity in % (based on after-tax reported net income) 238 84 16 15 28 23 5 31 2004 2005 2006 9M07 Net new asset growth in % (annualized on assets under management) 2004 2005 2006 9M07 Cost / income ratio in % 1) (based on Core Results) 3 7 5 6 75 76 2004 2005 2006 9M07 2004 2005 2006 9M07 1) Results for 2005 exclude charge to increase the reserve for certain private litigation of CHF 960 m and charge of CHF 630 m in relation to the change in accounting for share-based compensation. 2006 results exclude credits received from insurance settlements for litigation and related costs of CHF 508 m. 71 68 Slide 16
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